October 20 2019

Modern Monetary Theory

20 min read

Michael Craig, CFA, Managing Director, Head of the Asset Allocation and Derivatives Team, TD Asset Management; Haining Zha, CFA, Vice President & Director, TD Asset Management

In this paper, TD Asset Management ('TDAM'/'We') will provide a brief explanation of Modern Monetary Theory (MMT) and its underlying tenets. We will speak to the proposed merits of this economic theory and explore its potential shortcomings. Finally, we will examine the practical implications of implementing MMT in terms of its effects on the macro environment and different asset classes.